In early 2023, Phillips 66 announced its intention to sell its JET brand gas stations at 1,270 sites in Austria, Germany, and the U.K. This move is part of a broader plan to divest non-core assets and strengthen its core refining business. The sale is expected to generate €3 billion (about $3.2 billion) and is part of a multiyear cost-cutting project that the company has been working on.
The decision to sell the JET gas stations follows similar moves in the industry. TotalEnergies recently completed the sale of its petrol stations in Germany and the Netherlands, while Shell has announced plans to divest approximately 1,000 of its petrol stations to focus on establishing electric vehicle charging stations.
In late 2023, hedge fund Elliott Investment Management acquired a $1 billion stake in Phillips 66 and called for a refocus on the refining business and reduction in operating costs. In a December activist letter to the refiner, Elliott warned that if sufficient progress was not made towards cost-cutting goals, they would push for management changes and the sale of the company’s stake in Chevron Phillips Chemicals (CPChem), as well as its European convenience stores and other non-operated midstream assets.
The sale of the JET gas stations is just one example of how companies are adapting to changing market conditions and consumer preferences. As demand for electric vehicles continues to grow, many oil companies are shifting their focus away from traditional petrol stations and towards charging infrastructure. This strategic shift will allow Phillips 66 to optimize its portfolio and strengthen its core refining business.